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KARACHI: Continuing its upward momentum from last week, the equity market opened on a positive note on Monday, buoyed by a favourable economic outlook due to rising exports and surging remittances.
The KSE-100 index, the benchmark for the Pakistan Stock Exchange (PSX), started the day with bullish sentiment, peaking early in the session. However, profit-taking in the latter half of the day pulled the index to an intraday low of 79,368 points. Despite the volatility, the market closed at 79,491 points, witnessing a gain of 158 points (0.2 per cent).
Several major stocks contributed to the mixed performance. On the downside, Meezan Bank Limited (MEBL), D.G. Khan Cement Company Limited (DGKC), United Bank Limited (UBL), Engro Corporation Limited (ENGRO) and Oil and Gas Development Company Limited (OGDC) collectively lost 126 points, pulling the index lower, the brokerage house Topline Securities said in its post-market report.
On the upside, Mari Petroleum Company Limited (MARI), Hub Power Company Limited (HUBC) and Engro Fertilisers Limited (EFERT) attracted buying interest, collectively adding 373 points to the index.
Over 535 million shares traded on the stock market on Monday at a total value of Rs8.9 billion. Pace Pakistan Limited (PACE) led the volume chart, with over 56.8m shares traded.
“Stocks closed higher amid upbeat economic outlook amid rising exports, surging remittances,” said Ahsan Mehanti of Arif Habib Corporation.
He added that the likely approval of a $7 billion new IMF Extended Fund Facility (EFF) on Sept 25, along with a stronger rupee and falling leverage costs, played a catalyst role in the market’s positive close.
Globally, US and European stock markets were mixed on Monday as investors traded cautiously ahead of the US Federal Reserve’s first interest-rate cut since 2020.
In New York, the Dow was up slightly, but the wider S&P 500 and the tech-heavy Nasdaq were lower in late-morning trading. In Europe, London closed marginally higher, but all the main continental exchanges were slightly lower.
Published in Dawn, September 17th, 2024
